Ghana government finalises barter of gold for oil products arrangements – Bawumia 

Vice President Bawumia

Vice President Mahamudu Bawumia Thursday said the government has completed discussions to operationalise the barter of gold for oil products next month (January 2023). 

The barter of gold for oil represented a major structural change of the economy. 

This has become very necessary because the demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves resulted in the depreciation of the cedi and increased the cost of living with higher prices for fuel, transportation and utilities. 

On his Facebook wall, Dr Bawumia wrote: “I am happy to announce that the Government of Ghana has concluded the arrangements for the operationalization of the Gold for Oil policy.” 

Consequently, he said, the first oil products under the policy will be delivered next month (January 2023). 

“My thanks to the Minister for Energy, Minister for Lands and Natural Resources, Governor of the Bank of Ghana, the Chamber of Mines, PMMC, NPA and BOST for their leadership in the operationalization of the Government’s Gold for Oil Policy,” he added.  

The new policy regime will enable Ghana to use gold rather than the US dollar reserves to buy oil products. 

The barter of gold for oil is one of the most important economic policy changes in Ghana since independence. 

It will fundamentally change Ghana’s balance of payments and significantly reduce the persistent depreciation of the Ghanaian currency with its associated increases in fuel, electricity, water, transport, and food prices. 

This is because the exchange rate will no longer directly enter the formula for the determination of fuel or utility prices since all the domestic sellers of fuel will no longer need foreign exchange to import oil products.  

About two months ago, the Vice-President posted on his Facebook wall to announce government’s plans to barter gold for oil and thanked the Ministers for Lands and Natural Resources, Energy, and Finance, Precious Minerals Marketing Company, the Ghana Chamber of Mines and the Governor of the Bank of Ghana for their supportive work on that policy.  

Source: GNA 

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